Auxilo, an education-focused non-banking financial company (NBFC), has raised a large debt capital of ₹225 crore (approximately $25.5 million). This large capital inflow represents the collaboration of investors, which demonstrates the high level of trust in the business model and financial results of the company in the niche edu-fintech sector. The recent financing involved the major financial systems and wealth management companies such as Neo Group, Nuvama Wealth, Dezerv, and The South Indian Bank.

Debt funding round primary mission of Auxilo

The capital raised by Auxilo under this round was exactly ₹225 crore. This increase in debts was in the form of issuing non-convertible debentures (NCDs). To raise the sum per the company’s regulatory filing with the Registrar of Companies (RoC), the board of Auxilo officially issued 22,500 NCDs with a face value of ₹100,000 each to raise the total stated amount. The involvement of several large institutional investors highlights the appeal of Auxilo as a secure lending business with a concentration in education.

Neo Group, the largest shareholder in the debt round, injected the highest amount of funds of ₹100 crore (approximately $11.36 million). After Neo Group, the Nuvama Wealth and Herzerv invested ₹50 crore in the raise, and this shows that the wealth management space has a large investment. The South Indian Bank contributed the remaining ₹25 crore of the total secured amount.

The conditions of the debentures that were issued to most of the investors have a competitive interest of 9.7% per annum and a tenure of three years. The South Indian Bank debentures, which have a yearly interest payment of 10% were given a slight variation. The transaction was preceded by another debt round in the same year, in which Motilal Oswal invested ₹50 crore in Auxilo, a move that was solely reported by Entrackr at the time.

Auxilo was founded in 2016. Auxilo is an NBFC that specialises in education and is located in Mumbai. The core objective of the company is to help in accessing higher education of quality through offering customised financial solutions. Auxilo provides education loans to students who want to pursue higher education in India and other countries. In addition, it provides financial aid to educational institutions in the form of modernising their infrastructure.

The loans provided by Auxilo are all-inclusive; they include all the costs required in the course of study. The coverage extends to classroom spending, expenses incurred in procuring pre-visa permits and even airfares, which means students will have end-to-end coverage of their school activities. The model of the company serves the dual-level needs of students and educational institutions in financial aspects, making it a central player in the education finance ecosystem.

TheKredible, which is a data intelligence platform, reported that the Mumbai-based company has raised more than $200 million in equity and debt capital since its founding. This vast capital has been raised through the different high-profile investors such as Tata Capital, Balrampur Chini Mills and ICICI Bank, among others, and this is an indication of long-term investor confidence in its operational prowess and focus on the sector.

Financial performance

Auxilo demonstrated strong growth in its main metrics, which established it as a profitable company. Its operating revenue also showed almost 50% growth as it increased substantially to ₹528 crore in FY25, as compared to ₹357 crore it showed in the previous fiscal year, FY24.

The company also announced a significant increase in profitability, following the remarkable increase in revenue. The profit of Auxilo in FY25 has increased dramatically by 62% to ₹112 crore. Such a financial trend highlights the efficiency of the company and the ability to scale its education lending business in one of the most specialised markets.

The ongoing fundraise is placed in a larger context of problems in the edtech industry. The sector has been struggling in the post-pandemic period following a boom that occurred in the first place, with the companies jointly raising almost $6 billion. The general attitude of investors to edtech has turned, but the education loan sector, where Auxilo has worked, still has high resilience and demand.

According to TheKredible, in the period between 2024 and July 2025, edtech startups have been able to achieve funding of up to $1.2 billion. A considerable part of this capital, more than 35%, approximately $424 million, was specifically channelled to firms that provide education loans. This is a clear sign that, though the overall interest of investors in the edtech sector could have declined, the underlying need to fund education is strong and therefore specialised lenders such as Auxilo are an ideal target of debt investors.

Conclusion

The ₹225 crore debt round successfully closed by Auxilo will further solidify the company as a valuable powerhouse in the edu-fintech industry. This new capital, which has been raised with the help of NCDs by existing institutional investors, will play a critical role in aiding the further expansion of the company, especially in terms of increasing its loan book among students and educational institutions. This fundraising, combined with a 62% increase in profitability and approximately a 50% in revenues in FY25, indicates that Auxilo, due to its focused business model and its capacity to remain high-performing in the context of an underlying changeable broader edtech market, has received the liquidity it needs to continue its expansion strategies.